System, method and program product for generating and utilizing stable value digital assets

• US 10,438,290 B1
• Filed: 04/23/2018
• Issued: 10/08/2019
• Est. Priority Date: 03/05/2018
• Status: Active Grant

• Current Assignee: Gemini IP LLC (IPNav)
• Original Assignee: Winklevoss IP LLC
• Inventors: Winklevoss, Cameron Howard, Winklevoss, Tyler Howard
• Primary Examiner(s): Huang, Jay
• Application Number:
  US15/960,040
• Time in Patent Office: 533 Days
• CPC Class Codes: G06F 16/1815 Journaling file systems
• CPC Class Codes: G06F 16/1834 implemented based on peer-to-peer networks, e.g. gnutella p2p communication protocols H04L67/104
• CPC Class Codes: G06F 16/27 Replication, distribution or synchronisation of data between databases or within a distributed database system; Distributed database system architectures therefor
• CPC Class Codes: G06Q 20/065 using e-cash
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/223 based on the use of peer-to-peer networks
• CPC Class Codes: G06Q 20/389 Keeping log of transactions for guaranteeing non-repudiation of a transaction
• CPC Class Codes: G06Q 2220/00 Business processing using cryptography postage metering system using cryptography G06Q2250/05
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: H04L 2209/56 Financial cryptography, e.g. electronic payment or e-cash
• CPC Class Codes: H04L 9/0637 Modes of operation, e.g. cipher block chaining [CBC], electronic codebook [ECB] or Galois/counter mode [GCM]
• CPC Class Codes: H04L 9/3213 using tickets or tokens, e.g. Kerberos network architectures or network communication protocols for entities authentication using tickets in a packet data network H04L63/0807
• CPC Class Codes: H04L 9/3218 using proof of knowledge, e.g. Fiat-Shamir, GQ, Schnorr, ornon-interactive zero-knowledge proofs
• CPC Class Codes: H04L 9/3239 involving non-keyed hash functions, e.g. modification detection codes [MDCs], MD5, SHA or RIPEMD
• CPC Class Codes: H04L 9/50 using hash chains, e.g. blockchains or hash trees

Abstract

The present invention generally relates to the use of a stable value digital asset to pay dividends for securities and other financial instruments tied to a blockchain.

Claims

1. A method of issuing electronic payments using a stable value digital asset token on a digital asset security token comprising the steps of:

(a) providing a digital asset security token database stored on a first set of one or more computer readable media associated with a digital asset security token issuer system associated with a digital asset security token issuer, wherein the digital asset security token database comprises a log of digital asset security tokens including;

(i) a first set of digital asset addresses including a respective digital asset address for each respective digital asset security token holder; and

(ii) a respective digital asset security token amount associated with each respective digital asset address,

wherein each respective digital asset address of the first set of digital asset addresses is tied to a distributed public transaction ledger maintained by a plurality of geographically distributed computer systems in a peer-to-peer network in the form of a blockchain;

(b) providing a stable value digital asset token database stored on the distributed public transaction ledger maintained by the plurality of geographically distributed computer systems in the peer-to-peer network in the form of the blockchain, wherein the stable value digital asset token database comprises a log of stable value digital asset tokens including;

(i) a second set of digital asset addresses including a second respective digital asset address for each respective stable value digital asset token holder;

(ii) a respective stable value digital asset token amount for each respective stable value digital asset token holder, wherein the stable value digital asset tokens are issued by a stable value digital asset token issuer using a digital asset exchange computer system associated with a digital asset exchange;

(c) receiving, by the digital asset exchange computer system, a first request from the digital asset security token issuer system to purchase a first sum of stable value digital asset tokens in exchange for a second sum of fiat, wherein the first sum corresponds to the second sum based on a fixed notional amount;

(d) verifying, by the digital asset exchange computer system, the first request, including;

(i) verifying, by the digital asset exchange computer system, that the digital asset security token issuer is a registered user of the digital asset exchange; and

(ii) verifying, by the digital asset exchange computer system, that the digital asset security token issuer has at least the second sum of fiat available for transaction with the digital asset exchange as reflected in a fiat ledger of the digital asset exchange computer system;

(e) accessing, by the digital asset exchange computer system, the digital asset security token database to determine;

(i) each respective digital asset address of the first set of digital asset addresses for each respective digital asset security token holder; and

(ii) the respective digital asset security token amount associated with each respective digital asset address;

(f) determining a respective payment amount in stable value digital asset tokens to be made to each respective digital asset address of the first set of digital asset addresses based at least in part on the fixed notional amount, the first sum of stable value digital asset tokens and the respective digital asset security token amount associated with each respective digital asset address of the first set of digital asset addresses;

(g) generating, by the digital asset exchange computer system, transaction instructions for the first sum of stable value digital asset tokens by updating the stable value digital asset token database to reflect the addition of new stable value digital asset tokens in the amount of the first sum and the corresponding digital asset addresses associated with each new stable value digital asset token;

(h) transferring, by the digital asset exchange computer system, the second sum of fiat on the fiat account ledger from the user account of the digital asset security token issuer, to a custodial account of the digital asset exchange associated with stable value digital asset tokens, wherein the digital asset exchange custodial account will maintain in trust a fifth amount of fiat corresponding to a sixth amount of stable value digital asset tokens outstanding based on the fixed notional amount;

(i) publishing, by the digital asset exchange computer system to the blockchain, transaction instructions associated with crediting the respective payment amount of stable value digital asset tokens to each respective digital asset address of the first set of digital asset addresses where ownership of each digital asset security token remains the same;

(j) notifying, by the digital asset exchange computer system, each digital asset address of the first set of the digital asset addresses of each respective transfer of stable value digital asset tokens to each respective digital asset address of the first set of digital asset addresses.

2. The method of claim 1, wherein the blockchain is the Ethereum blockchain.

3. The method of claim 1, wherein the blockchain is the Bitcoin blockchain.

4. The method of claim 1, wherein the digital asset exchange is a regulated digital asset exchange.

5. The method of claim 1, wherein the digital asset security token is a security registered with a government authority.

6. The method of claim 1, wherein the digital asset security token is a debt security and the electronic payments are interest.

7. The method of claim 1, wherein the digital asset security token is an equity security and the electronic payments are dividends.

8. The method of claim 1, wherein the digital asset security token is secured by intellectual property rights and the electronic payments are royalties.

9. The method of claim 1, wherein the blockchain is based on a mathematical protocol for proof of work.

10. The method of claim 9, wherein the mathematical protocol is open source.

11. The method of claim 1, wherein the blockchain is based on a mathematical protocol for proof of stake.

12. The method of claim 11, wherein the mathematical protocol is open source.

13. The method of claim 1, wherein the blockchain is based on a cryptographic mathematical protocol.

14. The method of claim 1, further comprising a step of publishing, by the digital asset exchange computer system to a side ledger, the transaction instructions associated with crediting the respective payment amount of stable value digital asset tokens to each respective digital asset address of the first set of digital asset addresses and the publishing step (i) includes publishing the transaction instructions from the side ledger to the distributed public asset ledger periodically or aperiodically.

15. The method of claim 1 further comprising steps of:

receiving, at the digital asset security token issuer system, from at least one digital asset security token holder, a payment request prior to the receiving step (c), the payment request including;

(i) the digital asset address of the at least one digital asset security token holder; and

(ii) a request to transfer a payment amount of stable value digital asset tokens to the digital asset address of the at least one digital asset security token holder;

confirming, at the digital asset security token issuer system, that;

(i) the digital asset address of the at least one digital asset security token holder is valid;

(ii) the digital asset security token amount of digital asset security tokens associated with the address of the at least one digital asset security token holder is more than zero; and

(iii) the at least one digital asset security token holder is entitled to payment; and

generating, at the digital asset security token issuer system, the first request based at least in part on the payment request when the digital asset address of the at least one digital asset security token holder is valid, the digital asset security token amount of digital asset security tokens associated with the address of the at least one digital asset security token holder is more than zero and the at least one digital asset security token holder is entitled to payment.

16. The method of claim 1, wherein the digital asset security token database is maintained and stored on the plurality of geographically distributed computer systems in the peer-to-peer network in the form of the blockchain.

17. The method of claim 1, wherein the digital asset security token database is maintained on a sidechain, separate from the blockchain, wherein information on the sidechain is published and stored on the blockchain periodically or aperiodically.

18. The method of claim 1, wherein the generating step (g) includes generating, by the digital asset exchange computer system, transaction instructions for the first sum of stable value digital asset tokens by updating the stable value digital asset token database to reserve stable value digital asset tokens in the amount of the first sum.

19. The method of claim 1, wherein the payment information relates to a dividend to be paid based on ownership of each digital asset security token.

20. The method of claim 1, wherein the payment amount relates to a royalty to be paid based on ownership of each digital asset security token.

21. The method of claim 1, wherein the payment amount relates to interest to be paid based on ownership of each digital asset security token.